The new port idea is conceived to take care of future cargo handling requirement of the region. “We thought of setting up a satellite port as we have to spend a huge amount on shifting the fishing harbour from here to Mulakedu, the area pretty close to Bheemunipatnam, where we have our own site with waterfront area,” VPT Chairman Ajeya Kallam told The Hindu.

Land swap

VPT was given 167 acres at Mulakedu and 70 acres at Dolphin's Hill by the Revenue Department after it surrendered 250 acres to facilitate the modernisation of INS Dega airport.

The Indian Maritime University has been asked to submit a techno-economic feasibility study on shifting the fishing harbour. The present fishing harbour site will be used for expanding the port area.

Mr. Kallam said they had to spend Rs.300 to Rs.350 crore on setting up a fishing harbour by developing breakwater and a channel – the basic infrastructure required for a new harbour. “Hence, by building few more berths closer to it we will make the maintenance job easy,” he said.

PPP mode

Mr. Kallam, who is implementing an action plan to make Visakhapatnam Port truly world-class by 2012-13, said if possible, they would take up the new port work under Public, Private Participation mode.

A satellite port would provide freight advantage to logs being transported from here from Anandapuram and Thagarapuvalasa.

The VPT had handled a throughput of 65.5 million tonnes during 2009-10 – the highest after Kandla Port -- and is expected to handle almost the same cargo during the current fiscal.

Till mid-August, it handled 24 million tonnes of cargo.

Mechanisation